The much talked about Vehicle Scrapping Policy has finally been launched by Prime Minister Narendra Modi who called it a significant milestone in India’s development journey
Here is what you need to know-:
- Private vehicles will be de-registered after 20 years if fitness test failed
- Registration renewal & fitness test fees hiked significantly for personal vehicles after 15 years
- Commercial vehicles to take fitness test at 15 years and will be de-registered if test failed
- Govt owned vehicles will automatically be scrapped in 15 years
Is there an incentive to scrap your old car?
- If old car is scrapped the registration on a new purchase will be waived off
- Re-registering your old car is now going to cost you 8 times more from October 1
- Govt has also instructed all car makers to provide 5% discount to customers against a scrapping certificate
- Scrap value is estimated to be 4-6% of new vehicle cost
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So when does this get into gear?
- Rules for fitness test and scrapping centres to come into effect on 1st October, 2021
- Mandatory scrapping of govt vehicles from April 1, 2022
- Fitness testing for heavy commercial vehicles from April 1, 2023